The U.S. Cannabis Spot Index increased 1.3% to $1,005 per pound.
In grams, the Spot price was $2.22.
U.S. wholesale spot price has now put together four weeks of gains as legacy market prices steady or tick higher and losses in New England slow. Spot traded over $1,000 per wholesale pound for the first time since February 2023 as gains in the largest U.S. market, California, continued. Since February 2023, California spot is up $151 per pound.
Washington State spot rose $20 this week, making gains for the third week in a row. Oregon spot, however, fell below $700 per pound for the first time since June 2022. Colorado spot slipped $15 this week after putting together five weeks of price gains.
New England markets netted +$53 this week after a mixed performance across states. Maine price fell $14 per pound basis spot. Connecticut spot fell $26, but still trades expensively in the mid $2,700s per pound. Vermont spot fell $8 per pound, maintaining its place as the second most expensive cannabis in New England. Rhode Island jumped $24 as price mirrors that of Massachusetts, albeit at a $460 spread to the Bay State. Massachusetts has put together some gains of late, jumping $77 this week as it bounces up from an all-time low below $1,000 per pound made in early March 2023. New England states are likely to undergo a demand surge this spring and summer that should lift price, but there’s a basic instability in the Maine, Massachusetts, and Rhode Island markets caused by extremely high volatility and significant price destruction.
Cannabis spot prices in the Midwest are showing a bit of stability with gains in Illinois. Michigan price remains below $1,000 per wholesale pound with a $3 uptick this week and talk out of the state focused on how the illicit market is undermining legal market prices. The Illinois / Michigan spot spread jumped $127 to a rich $1,525 this week.
On April 21, the New Jersey adult use market will be a year old. To mark the occasion we touched base with Edmund DeVeaux, President of the New Jersey CannaBusiness Association to take the pulse of the New Jersey market. See the interview in this week’s Premium Report.
October 2023 Implied Forward initially assessed at $1,015 per pound.
At $1,015 per pound, the May 2023 Implied Forward represents a premium of 0.9% relative to the current U.S. Spot Price of $1,005 per pound.
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Of Licenses, Active Licenses, and Price Recovery
Looking Ahead After a Year of Adult Use Sales – Interview with New Jersey CannaBusiness Association